How the category pivoted in the face of its greatest innovation challenge yet

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21_Insights_bursting-the-wellness-bubble

Bursting the Wellness Bubble

The COVID-19 pandemic has left no sector, society, or consumer unchanged, and the wellness category, which has always grown at the speed of trends, is no exception. The pandemic simultaneously deepened consumers’ need for wellness on a massive scale while dismantling the gyms, salons, spas, and studios that the category was built upon. This unique collision of forces has fueled one of the category’s most rapid and seismic evolutions to date. 
Pre-pandemic was a golden era of expansion for wellness. Between 2015-2017, the wellness category was growing at twice the rate of the global economy, with a 6.4% annual growth rate that ballooned into a $4.5T global market1. 
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In this expansion, wellness came to represent much more than the absence of disease. A perpetual self-improvement project for the aspirational consumer, the wellness quest was impossible to ignore and hard to resist – but also a tall order to keep up with, demanding constant engagement and continuous levelling-up of investments in time and money. In 2019, 87% of 13-36 year olds had focused on improving an area of their health in the year prior, spending a total $158 billion doing so2. On average, US consumers were investing $155 each month on wellness – a lifetime value of $112k.
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<h3>Wellness had become an obsessive, yet elusive, aspiration.</h3>
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Enter COVID-19. Wellness spaces became more of a threat to health and wellbeing than enabler. Pseudo-scientific benefits and spiritual escapism couldn’t protect consumers from the contagion, and the pause gave consumers the chance to reevaluate the tangible value and ROI of their more esoteric wellness investments.
This spurred some inevitable and existential questions: Are we more well as a result of all this wellness? What do we let go when nobody’s watching? Do we even want to go back to yoga studios? Should we be spending this much on something that hasn’t quite delivered what it promised?
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<h3>We believe the next generation of growth for the category will be driven by a shift from the esoteric to the essential.</h3>
Consumers and brands alike are reexamining the elemental foundations of wellness for the here and now (not just for an aspirational future). This is laying new paths to growth that are grounded in universal and essential needs – and pose the category to play an even greater role in more peoples’ lives. Said simply: we are focusing on the fundamentals.

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Consumers will desire effective, everyday solutions that keep their bodies protected and safeguarded from disease, with a refocus on timeless immunity-boosting staples like sleep, stress, and nutrients. As experts have become influencers and trustworthy information life-saving, credibility is the new currency of wellness. Brands will increasingly invigorate their offerings through new evidence-driven customer experiences.
From telehealth to Peloton, digital-physical mashups will continue to redefine the health and fitness landscape as consumers take on wellness from the safety of their homes. Spas will feel increasingly clinical and science-driven, and MedSpas will take on broader concerns beyond the skin deep with expanded menus of lab testing and health services.
Rising star: WellSet is not just a Yelp for wellness providers; the digital booking platform is out to make preventative healthcare more accessible by building credibility for the wellness category at large. Wellness providers across over 30 modalities are peer-reviewed and background checked, with credentials and reviews made public.

Safety

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After a year of stress, loss, and pervasive uncertainty, resilience and fortitude of mind, body, and spirit are more important than ever. From mental health to stress management to financial planning to mindfulness, brands are helping consumers build the internal muscles to better manage turbulent times and unforeseen futures.
Stress tracking is the new step tracking, and digital mental health solutions will continue to multiply, from inclusive and accessible therapy alternatives to modern tools for mindfulness. Resilience also will be a major theme in financial wellness, as employee wellness programs and new financial products are designed around benefits that are made to last.
Rising star: Cove is the latest breakthrough among health-monitoring wearables, pioneering ‘stress-cancelling’ technology that uses gentle vibrations to activate the parts of the brain that regulate stress, improving resilience for more balanced days and restful nights.

Resilience

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Forced isolation has shown us that social closeness is a critical component of our health and wellbeing &#8211; so much so that millions continue to risk their physical health in pursuit of minimal amounts of social interaction. Moving forward, consumers will place new value on the health of their relationships and quality of their connections as a gauge of their overall wellness, and brands will focus new emphasis on deepening these connections to enhance wellbeing benefits.
From sexual wellness solutions that deepen romantic connection, to new approaches to end-of-life and death care that support closeness and community healing, notions of self care will expand to include community care. Former spas and studios will increasingly feel more like wellness social clubs, and pent up demand for communal experiences will drive a new generation of ways to get better together.
Rising Star: Remedy Place is a social wellness club in LA: a self care destination that enhances both your health and your social life at the same time. Positioned as a social environment without any of the temptations, Remedy Place offers treatments and experiences meant to be shared with loved ones, or enjoyed solo.

Intimacy

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2020 was the year of the at-home stylist, trainer, chef, and practitioner. Wellness brands embraced “teach me how to fish” survival strategies to stem off permanent closures, in turn empowering and educating a new class of wellness consumers. DIY will be the new DTC for wellness brands of tomorrow, as consumers continue to flock to at-home and accessible twists on familiar wellness services and experiences.
While (we hope) the DIY-haircut is not here to stay, consumers will expect adaptive and fluid wellness solutions that can meet them where they’re at. This a democratizing shift that is knocking down barriers to entry to the category; from at-home diagnostics to self-guided therapies to the backyard gym, wellness-for-all is finally here.
Rising Star: EverlyWell is an at-home health testing kit startup that delivers over 30+ tests, from food sensitivity, thyroids and allergies to COVID-19 test kits. With personalized results and health insights, EverlyWell is a platform for self discovery – made accessible through affordable and transparent pricing.
“Every brand, in some way, is a wellness brand now.” -Agathe Guerrier, co-Chief Strategy Officer, TBWA\Worldwide3
As we reemerge into life with a vaccine, every brand will be in the business of wellness with a role to play in supporting the safe and healthy reopening of economies, and ensuring all consumers have support in their pursuit of essential wellness needs: safety, resilience, intimacy, and DIY self-sufficiency. If the pandemic has taught us anything, it’s that none of us are well until all of us are well.

The Foundations of Essential Wellness 

CITATIONS:
<ol>
<li><a href="https://globalwellnessinstitute.org/press-room/statistics-and-facts/">Global Wellness Institute</a>, 2018</li>
<li><a href="https://www.ypulse.com/article/2019/04/15/young-consumers-are-spending-over-150-billion-a-year-on-wellness/">YPULSE</a>, 2019</li>
<li><a href="https://www.prnewswire.com/news-releases/every-brand-is-a-wellness-brand-now-tbwas-backslash-reveals-the-cultural-shifts-defining-the-next-wave-of-wellness-301142030.html">TBWA\Worldwide</a>, 2020</li>
</ol>

Kate Fairweather

Author

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Kate_Fairweather

The restaurant industry is facing new challenges as customers expect a great experience across every touchpoint and channel

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21_Insights_appetite-for-innovation

Appetite For Innovation: 4 Strategic Initiatives To Improve Your Guest Experience

The restaurant industry is facing new challenges as customers expect a great experience across every touchpoint and channel. Winning restaurants embrace technology to create the customer experience of the future, while finding new ways to diversify revenue, transform operations, and rethink store formats. At Fahrenheit 212, we have partnered with some of the best-in-class CDRs/FCs/QSRs to bring new experiences and products to market. In the process, we have identified four emergent business opportunities based on the ever-evolving landscape around us. If these key opportunities aren’t on your radar, or don’t occupy a line on your strat planning gantt, they should be.
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<h3>Preserving brand experience amidst the boom of off-premise dining</h3>
Within the four walls of the restaurant, consumers engage with more than the menu &#8211;  they immerse themselves in the complete brand experience, engage with bespoke service touchpoints, and explore the dining atmosphere. As such, players in this space don’t just charge for their food, but also put a price  on the complete value proposition that they provide.
But today, off-premise dining is bigger than ever (take out, delivery, and catering) &#8211; and in these moments, food is the only component of the brand’s value proposition  that consumers engage with. Without the complete brand experience, the competitive set becomes vast (Is your brand known for its burgers? Every diner and bar on Seamless delivers burgers.), but also the offering becomes commoditized. This leaves the off-premise value proposition vulnerable.
We believe the paradigm that restaurants can only export their food should be turned on its head. Instead of focusing solely on the food, brands need to ask, “What is the complete off-premise value proposition that brings my brand to life?”
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<h3>Technology integration that enhances both a brand’s value proposition and its bottom line</h3>
Rising costs of labor have given technology companies a compelling platform. But service and labor aren’t just expenses &#8211; they are tied to key drivers of the guest experience and overall value proposition, and therefore deeply connected to revenue.
Before adopting and implementing technology, it is essential to understand why guests are visiting a brand’s establishment: the objective and benefits of service and labor in those moments, and how they contribute to the experience, both positively and negatively. For example, bartenders do more than just mix drinks. They are companions for guests who dine solo, and brand ambassadors who guide guests in making the best menu choices. But bartenders can also slow down service during peak hours. While tech may harm guest experience in the companion and brand ambassador moments, it improves it during happy hour chaos.
We believe tech is the how, not the what. Before tech is adopted, brands must first ask themselves &#8211; which moments are right for technology, and how might our service and  labor need to evolve around this technology? Only then can tech truly lower costs while enhancing the value proposition.
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<h3>Rethinking the franchisee relationship</h3>
While profitability is top of mind for all franchisees, their motivations, level of experience, and needs vary drastically. Standardization is critical for franchised brands to scale and maintain a consistent experience, but that same rigidity can be frustrating and demotivating for franchise owners who see themselves as innovative, entrepreneurial, and deeply immersed in the challenges affecting their business.
When it comes to consumers, brands have acknowledged the need to segment and design against different personas, so why do brands insist on a one-size-fits-all approach with their franchisee partners? We believe the differences among franchisee owners should be acknowledged, embraced, and designed around a portfolio approach of franchisee solutions. Instead of treating all franchisees the same, brands should ask, &#8220;what are the different franchisee personas, and how will that inform my programing and initiatives strategy?&#8221;
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At Fahrenheit 212, we have already taken on many of these challenges for our clients, and are happy to discuss macro insights with you, as well as find ways to unlock value within your key initiatives.
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<h3>Designing the store experience to meet the demands of new channels</h3>
Convenience has reached a critical pitch and as the future of delivery and autonomous driving converges on us, brands need to think about how their experience should  evolve &#8211; or change completely. They need to look at product design, the physical space, and even the primary “customer” (consumers, delivery drivers, autonomous cars, drones, etc.) they serve.
While many brands are thinking about this future, most are thinking about it in the context of the assets that they have today &#8211; an inside out approach. Conversely, many consultancies take an outside-in approach &#8211; imagining a future state with no guardrails, which leaves little to no action for brands to take toward that end state in the near term.
We believe brands should ask, “what is the optimal future experience, and what is the actionable path of progress toward that future in the short, medium, and long term?”
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At Fahrenheit 212, we have already taken on many of these challenges for our clients, and are happy to discuss macro insights with you, as well as find ways to unlock value within your key initiatives. 
<a href="https://wp.frog.co/wp-content/uploads/2021/11/RestaurantOpportunities_byF212.pdf" target="_blank" rel="noopener">Download →</a>

An Interview With Tom Abraham and Kate Fairweather of Fahrenheit 212, co-written and first published by Bamboo Crowd

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21_Insights_demystifying-innovation-consulting

The Making of an Innovation Consultant

&#8220;Innovation” is the business topic of the moment, yet as a term it can be both nondescript and ubiquitous so that we barely register its meaning. But, when understood by definition — the introduction of something new, something that creates value or growth — it is powerful and exciting, it defines our contemporary experience, and its influence is felt across the world. It’s about unlocking insights and translating those insights into ideas.
Innovation operates at the intersection of technology, design, and strategy, where a new wave of “innovators” are tasked with designing, creating, and building breakthrough propositions that drive change; from face-detecting systems that will authorise payments, to driverless cars and smartphones that are now millions of times more powerful than all of NASA’s combined computing in 1969! Innovation is perhaps the most powerful catalyst in galvanising growth, both for our society and businesses around the world.
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<h2>Do you have what it takes to make it in innovation consulting? Ask yourself these five questions.</h2>
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The most successful innovation consultants share a few traits that allow them to challenge convention and push boundaries. Fahrenheit 212, a global innovation and design consultancy, has spent 15 years mastering the art of spotting top talent and training them to become world-class innovators. We speak with some of the thinkers and makers at Fahrenheit 212 about identifying and cultivating the traits required to rise to the top of the innovation consulting industry. Wondering if you have what it takes? Start by asking yourself these five questions.

Kate Fairweather, an innovation consultant at Fahrenheit 212, was seeking a role that combined her love of creative writing, exploration, and human behavior. Following college, she found an outlet in the business world through innovation consulting. “Innovation encompasses all of that, enabling me to dip in and out of different categories, craft stories, and dig deep into the consumer psyche,” Kate said.
Tom Abraham, an engagement manager at Fahrenheit 212, went to school for engineering but realized it wasn’t his passion. “I loved the problem-solving process, and the ability to use logic and reasoning to get to an answer,” Tom said. “I searched for other opportunities to apply these skills in my career. That eventually led me to innovation, using a similar skill set but with a focus on creating new solutions.”
Curiosity is a part of the ethos at Fahrenheit 212. “Inquisitiveness is an everyday part of our culture — folks who succeed here have a natural desire to dive into the details, poke around where people previously took things for granted, and incessantly ask why,” Kate said.

Do I constantly ask why? Innovation consulting is for the curious.

In some strategy consulting firms, access to high-level clients is reserved for C-Suite staff and partners, with the project team slotting in where needed in a more ancillary role. If your goal is to connect with key clients, look for a firm that grants this access.
“At Fahrenheit, anyone on the team may be an expert in a specific topic, so the conversations are much more open,” Tom said. “I’ve presented directly to C-Suites, interviewed CEOs one-on-one, and shared our findings at quarterly Board of Directors meetings — all of which were opportunities that I would be waiting years for in other industries.”
Another benefit of this inclusive approach is a more diverse set of responsibilities for project staff. “In recent history, some of my day will be about the future of digital wellness for iGen, other parts about the vision for advice in the financial services category, or others about innovative juice concepts in Russia,” Kate said. “The variety gives me a fresh perspective on the different topics I’m tackling, and definitely keeps it interesting.”
Which brings up another point. Whether you’re new to innovation or already working in it and looking for a change, it’s important to take the time to find a good fit with the right recruitment agency or innovation consulting firm. Kate found it at Fahrenheit 212. “Fahrenheit 212 also has a big teaching culture, and a big part of my role is about mentorship and sharing my knowledge of the practice,” Kate said. “Watching people grow and flourish as innovators is one of the most rewarding parts of my job — it’s gives me energy every day.”

Do I want more access? You can get it with the right firm.

The best innovation consultants are radically nimble. This includes an ability to juggle multiple projects at once. “One of my favourite parts of Fahrenheit 212 is that I work on a few projects at any given time, so I spend my day thinking about different categories,” Kate said.
Agility also relates to one’s stamina. Those drawn to predictability and quick solutions may find the pure process of innovation exhausting. “Innovation is interesting work, but it can be very draining,” Tom said. “To make it in the industry, you have to love getting up every day not knowing what the answer to the question you left last night is.”
There will undoubtedly be moments that a consultant feels they don’t know how to solve a problem. For some, this could be debilitating. For the top innovation consultants, it’s a welcome challenge — dealing with ambiguity is the norm. “You have to be comfortable with the stress, able to think quickly on your feet, but most importantly, you need to be able to maintain the blend of creativity, curiosity, and strategic thinking that is required in this job, for any client in any industry,” Tom said.
Agility also means shifting to meet industry trends. For Tom, the biggest trend in innovation is consolidation. “Every consulting firm and agency wants to get into innovation, and they are buying and building their practices at an increasing pace,” Tom said.
As the industry gets more competitive, look for a firm that can differentiate itself. Some agencies move into more strategic work and some move toward execution and development. At Fahrenheit 212, “the biggest shift is our level of understanding of what innovation can do. We are getting more nuanced project briefs, working with more internal innovation teams, and seeing a faster pace of commercialization of concepts,” Tom said.

Can I flip switches? Innovation consulting is for those with agility and stamina.

The top innovation consultants can take an idea through to commercialization and bring the right stakeholders along at key points in the process. This requires a tremendous amount of confidence. “By nature, everything in innovation starts as an unsure idea, and a big part of my role is being able to clearly articulate that thought, get others excited about it, and lobby with tenacity to push it forward,” Kate said.
A core trait of innovators is an ability to learn quickly, to gain an understanding of something that they aren’t an expert in. “More than anything, this requires soft skills — active listening, asking the right questions, determination, and drive. The hard skills come after,” Tom said.
Fahrenheit 212 looks for self-driven people. Kate and Tom seek people with traits like empathy, creativity, imagination, vision, and resourcefulness. But consulting firms also need to deliver commercial rationale and opportunity/growth to their clients — innovation must be connected to viable businesses models. Hence the need for a specific, albeit secondary, set of hard skills.
“I need to be able to analyze and understand a business quickly, to be able to speak the language of different groups within every client and to be able to quickly create consensus between these groups to move an idea forward,” Tom said. “Additionally, the ability to quickly create rough business models is always handy.”

Am I courageous? Being creative requires confidence and skill building.

After Kate completes her early-morning creativity sessions, she often finds herself collaborating with others on her projects. “Depending on where we are in our process, I spend the rest of my day researching, cracking consumer insights, articulating an idea and its roadmap to the future, or working with designers to bring concepts to life,” she said.
The phrase innovation doesn’t happen in a silo is worn, but true. “I don’t ideate in a vacuum, and the best ideas come from collaboration and debate with others,” Kate said. “Being able to build bigger ideas with others — sometimes setting ego aside — is critical.”
Learning how to build and maintain a diverse team — and embracing the fact that we all approach problems differently — is another core trait of top innovators, and one that’s embraced by Fahrenheit 212. “We make sure that every team has diverse thinkers, and encourage them to come up with alternatives to be debated,” Tom said. “We believe that innovation is a practice, and it can be trained. We spend a lot of time and effort making sure that we keep that diversity of thought at every level of our company.

Can I play nice with others? Innovation consultants know how to lean on the team.

<h3>Get ready for the payback.</h3>
Innovation consulting is challenging, but worth it. While there are many ways to gauge the success and impact of innovation, the metric that matters most to Fahrenheit 212 is its ‘commercialization rate’, the percentage of projects that move into the formal commercialization process. But both Kate and Tom also strive for an infectious feeling of excitement.
“There are much more immediate signs that you’ve done your job,” Tom said. “Watching the room light up upon presenting a new way of thinking about a problem, or a new solution to an existing challenge that our client hasn’t figured out creates a feeling of success on its own, and makes me feel personally like I have done a good job.”
Another reward is a satisfied and engaged client. “For our clients, success is when we take those breakthrough moments and create a two–sided solution that solves for an unmet consumer need while also unlocking a commercial opportunity for their business,” Kate said.
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<h3 id="8d6f">Network and Train Your Brain. Tips to set yourself up for success in innovation consulting.</h3>
Eager to ramp up your game? There’s a few things you can do right now. “Innovation is a pretty small industry. Jobs can be hard to come by, and often the availability doesn’t line up with when a candidate might be looking to leave their current role,” Tom said. Networking is key. “Attend events, talk to practitioners, connect with an expert recruiter, and make yourself known so that when a role does open up, you get a call.”
At the same time, always be training. “From a more tangible perspective, it’s about strengthening the other side of your brain,” Tom said. “If you’re left-brained, work on opening up your creative side, whether through learning about the human-centered design process or how to paint.”
Already creative? Then spruce up your business savvy. “Figure out the ins and outs of your current industry, learn how to navigate financial statements, or build a business model for an idea you have,” Tom said.
“Innovators at Fahrenheit 212 focus on different parts of the process — but to truly be a great innovator, you need to understand all of them,” Tom said.
We are proud of our partnership with <a href="https://www.bamboocrowd.com/" target="_blank" rel="noopener">Bamboo Crowd</a>. You can find the original article <a href="https://www.bamboocrowd.com/2018/05/14/demystifying-innovation-consulting-interview-tom-abraham-kate-fairweather-fahrenheit-212/" target="_blank" rel="noopener">here</a>.

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